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Closing Bell With Maria Bartiromo

News/Business. Maria Bartiromo. Analysis of the day's winners and losers in the stock market. New.

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01:00:00

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San Francisco, CA, USA

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Comcast Cable

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Virtual Ch. 58 (CNBC)

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
528

PIXEL HEIGHT
480

TOPIC FREQUENCY

Us 20, Groupon 6, Diana 5, Jared 5, Obama 4, Dreier 4, America 4, Marc 4, Bernie Madoff 4, Bob Iger 3, Marc Dreier 3, Washington 3, Scott 3, Espn 3, Lucasfilm 3, Bob 2, Geico 2, Peter Anderson 2, Congress 2, Bobby 2,
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  CNBC    Closing Bell With Maria Bartiromo    News/Business. Maria Bartiromo. Analysis of the  
   day's winners and losers in the stock market. New.  

    November 8, 2012
    4:00 - 5:00pm EST  

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"closing bell." we are really selling off, down 118 points on the dow. here's maria with the second hour of the "closing bell." see you tomorrow. and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. red arrows on wall street once again. the dow industrials falling 400 points, 3%, in the last two trading sessions. today, a decline of 120 points. look at how we're finishing the session. more nervousness that taxes are going higher. we have year-end selling. might as well sell winners now because you're going to get taxed at a higher rate in 2013. that is the thinking. the dow jones industrial average down 120 points tonight, 12,812 the last trade on the industrial average. nasdaq composite down 42 points, 2895. technology among the weaker sectors today. the s&p 500 gave up 17 points at 1377. we are ending tonight certainly
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at the lows of the day. we've been seeing drastic moves in equities the last couple days. we're down 450 points total since yesterday morning. peter anderson says we're adjusting to election news. while we could see steep changes on a daily basis from now until year end, he expects the market to firm up by then. peter joins me now along with ben pace, jim key from south texas money management, and our own rick santelli. gentlemen, nice to have you on the program. thanks for joining us. >> thank you. >> how do you navigate this, peter anderson? you have a market that keeps losing steam. you have uncertainty knowing we're not going to know tax rates. certainly until we get information on the fiscal cliff. we're waiting on that. once again, we find ourselves in a holding period. what do you do? >> well, you know, i think that quality is just totally masked right now by volatility. as we get closer to january, it's a beautiful thing. what we will start seeing is
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convergence of some of the facts in terms of what the solutions will -- the proposed solutions will be, maria. right now i think everybody's just in a holding period. but that -- it takes a lot of courage to do this, but we're telling our clients to stay fully invested at this point because we think this is just a short-term volatility. i know it's very, very difficult emotionally to navigate right during this week. i think come january we will get a clearer picture. >> well, we better, right? otherwise we go over the fiscal cliff. jim key, how bad can it get? i mean, i know that right now we got dividend taxes at 15%. under the current law they will go up to 43% unless these guys do something about it. what's the worst case scenario? you don't think they're really going to go to 43%, do you? >> no, i think there's a lot more incentive and appetite for compromise now than there was in 2011. you know, frankly we've had a strong market. it doesn't take much to get a
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pullback. we see yesterday as kind of an election tantrum. the market's not pricing a recession. we're not seeing that and other recession indicators. i think your ability to add value by looking at dividend and capital gains at this point is probably zero. everybody's focused on that. i would step back, look at enduring themes. look at things like the growing emerging market consumer. look at companies that sell drugs and consumer staples. those are the things i would look at. >> all right. what about you, ben pace? >> i think we're going through a correction phase right now. we expected that we would see something like this. there's going to be a lot of angst. we don't think we'll fall off the cliff. we're pretty constructive longer term. we think that we're going to have positive economic growth and positive earnings growth in 2013. valuation provides a floor. the thing we're going to need is a little catalyst here.
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we're going to be viewing this probably 2 or 3 percentage points below these levels as more of a buying opportunity. >> rick santelli, we knew this was coming. they set this up this way. why there's no plan b is beyond me. do you have any idea when we might get some resolution on this? >> well, i don't have an idea on the resolution, but i think if the equities keep moving like this, there will be resolution quicker. just think back to the failed first t.a.r.p. vote. what made it happen quickly, which is unfortunate, was the big stock market drops. anderson, i agree with what he said. good, quality stocks go down just like the rest of them. but during quantitative easing, all the quality stocks went up with the rest of it as well. so it's a double-sided coin. i think that the best thing i've heard so far is we are recalibrating after the election. we certainly are. and it isn't only reversing that
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the markets picked the wrong guy, but now dealing with the new business ahead. >> all right, guys. we'll leave it there. people ringing the bell doing some chanting right now. they're spelling home depot. the market is extendsing the losses. let's get to courtney raig within more on today's selloff. >> good try, maria. they are loud. the averages are closing lower for a second straight day following president obama's re-election. a number of the names that moved on potential policy implications changed course today. financials were wednesday's biggest losers as fear of continued regulation under president obama sent investors elsewhere. the group is still negative overall on the session. it was one of the better performing sectors today as a number of banks are on the upswing. let's go through them. isi upgrading bank of america saying the bank has mtie capital ratios and lower operating costs.
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that's pushing shares up almost 2%. we're up as much as 2.5% minutes before the close. u.s. regulators approve jpmorgan's $3 billion stock buyback. that was lifting shares earlier. as you can see, finished lower with the rest of the group at the end of trade. hospital stocks did soar wednesday now that we know obamacare is likely here to stay. now hoptd names are selling off. down about 4% or more. those concerns about coal persisted in thursday's trade. they continued to slide lower as investors bet the president's re-election will lead to increased regulation for the industry. we know mitt romney was more of a fan of coal stocks. but he will not be our president. we now know. mar maria, back to you. >> court, thanks. meanwhile, what's the deal with groupon? the daily deal website's latest results out just minutes ago. we'll talk about what groupon needs to survive. the story next. plus, more on this busy edition
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of the "closing bell." coming up, the empire strikes gold? >> hello there. >> disney's ceo bob iger joins maria for a first-on interview to talk earnings and the acquisition that adds the star wars franchise to the magic kingdom's galaxy of studios. plus, rise above. should we be doing all we can to stop from going over the fiscal cliff? >> let's rise above the dysfunction and do the right thing together for our country. >> or is it a necessary evil for the long-term health of our economy? we debate straight ahead. and coming unraveled. he's the man some say is a bigger crook and liar than bernie madoff. >> how many people who are condemning what i did would know for sure they would never do anything like what i did if they knew they wouldn't get caught? >> we get the scoop about mark
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drier from a former employee who produced the award-winning documentary about one of wall street's biggest scam artists. that's all ahead on the "closing bell." i just want to give her everything. [ whistles ] three words dad, e-trade financial consultants. they'll hook you up with a solid plan. wa-- wa-- wait a minute; bobby? bobby! what are you doing man? i'm speed dating! [ male announcer ] get investing advice for your family at e-trade.
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welcome back. let's check groupon shares. the stock down sharply today after reporting disappointing earnings moments ago. john fortt breaking down the numbers. 10.7 pv 10.7% lower. >> yeah, the stock traded up into the close. revenue fell short. $568.6 million versus $590 expected. eps flat, basically zero. 3 cents expected. guidance also disappointed. the mid point of guidance is higher than the $634 million analysts were expecting. the profitability, the eps, is short. if you look at gross billings, what they had last quarter was $1.29 billion. that's just money collected from
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groupons. this was down quarter over quarter, a problem they've had in the past. barely above flat year over year. 4-x impact had some effect on that. it's definitely something to watch. a big culprit here is europe. growth was up 1.3% versus 80% revenue wise for north america. that showing up as a big problem for them. also, operating cash and free cash flow both just above half of what they were last quarter. they're also spending money on capital expenditures. investors sure to have lots of questions about all that. >> all right, john. thank you so much. can groupon continue wits current business model? roy troy argues that investors are overlooking some of the growth potentials. jay, you're bearish on groupon. did the latest results confirm this? >> yeah, apparently. they missed across the board. the billings thing, that's what you have to look at. that's worrisome.
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it's not an accident the stock is down 11%. i read it was down as much as 13%. it's not looking good. >> roy, what about you? anything in these numbers that change your mind? you still see some positive for this stock, right? >> i do see some positives. the numbers are pretty daunting. i am neutral. i'm a bit skeptical of where groupon is heading. one thing groupon has going for it is its large market share and its brand awareness. >> but what does that mean in terms of growth potential? that brand awareness. what does that mean for the company's growth prospects? >> yeah, they've been investing a ton of money, especially internationally. we mentioned europe is a bit of a sour point. but they're investing a loath more in asia. that is a huge market that groupon is betting big on. right now it does look like europe and in the u.s. that they're profits are going down. >> does this firm get smaller, jay? your firm is reporting that layoffs at groupon are happening. is this the beginning of the end for the company? these layoffs. >> it's got to cut a few jobs
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here. it's got to shrink down a little bit. obviously, it's struggling. i would bring up the point he just mentioned about the brand awareness. think about that. groupon is number one. it is the number one brand. it has the greatest brand awareness. these are the results you get with great brand awareness. what does that mean? what else can it did? it has to figure out something else. then when it has to figure out something else, that means it has to figure out something else. it's not going what it's known for doing. >> you know, silicon valley entrepreneur told me yesterday that he's positive about facebook. i want you to hear what he said about mark zuckerberg and get your reaction. >> i think he's not only one of the best technology industry ceos, i think he's one of the best ceos period in the world right now. he has an absolutely unbelievable long-term vision. he's just an absolute monster when it comes to execution. he's incredibly focused. >> roy, you agree with that? would you buy facebook here? >> i would. when we look at a long-term growth, i think silicon valley, especially in facebook, they
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look at a lot of the long-term innovation. i know that's not necessarily what investors want to hear when they're reporting quarterly numbers. i do believe facebook has a lot of growth, especially in the mobile technology world. five years ago when we were talking about mobile technology, it meant an entirely different world. today when we talk about mobile technology, we talk about smart phones. we talk about tablets. if you look at microsoft, the way they integrate windows 8, it is mostly geared towards the mobile technology. it's moving away from desk top computing. >> you think the stock ever goes back to the ipo? it's at $20 right now. >> maybe one day. in the near future, i doubt it. >> all right. we'll leave it there, gentlemen. we appreciate your insights. >> disney shares in focus. the company's earnings are about to hit wall street. ceo bob ooig ler speak with me next about the entertainment giant's numbers, the potential of disney's $4 billion acquisition of lucasfilms and
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more. you'll hear from him before the analysts. also, what if president obama and republicans fail to reach a deal on the fiscal cliff before the end of the year? we'll have a spirited debate. back after this. then -- it. >> i'd gone from having $100 million two weeks only to having nothing. >> it's the stuff of movies and crime novels. white collar criminal mark drier misappropriated hundreds of millions of his clients' funds. i'll talk with a former employee who made a documentary film about him. don't miss it.
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welcome back. disney out with its latest earnings results. we get right to it all right now and break it down. julia boorstin is live with bob iger from disney headquarters in a first on cnbc interview. >> that's right, maria. earnings per share coming in line with expectations. this is disney's fiscal fourth quarter. revenues were a little light. we are seeing growth for the most part across the board here. the studio entertainment division coming in a little light with significant growth at the media networks and parks and resorts. bob, thanks so much for talking with us today. >> pleasure. >> i have to ask about your media networks division.
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it looks like going through this report that the disney channel and espn continue to drive your growth. how long can you sustain this kind of growth? >> well, we have great confidence in our ability to sustain growth from both the disney channel businesses, which now number, by the way, more than 100 channels worldwide. of course, espn, which is, if anything, solidified its position as a real leader in sports television with longer deals for major league baseball, college football, college basketball to name a few. we feel great about the growth potential of both those businesses. >> but will we see an advertising dropoff after the boost we got from political ads this past quarter? >> the advertising dropoff you'll see for us is mostly local. we have eight tv stations, and advertising is a component of our total revenue that's relatively small. advertising on espn is slightly less than 40% of its total revenue. so we're less susceptible to advertising trends, whether
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they're a result of lack of political spending or ups and downs in the economy. >> maria? >> bob, let me ask you -- congratulations on the lucasfilm acquisition. great stuff there. we've been talking about it a lot. when does this begin to hit the bottom line? when do you actually see revenue from this deal? i know you've said the episode 7, 8, and 9 plan to start rolling out in 2015. can you give us a sense of what it does for the bottom line? >> the first thing that happens is we go through a regulatory process. we hope that that doesn't take too long. so we will start seeing the effects of this in terms of revenue as soon as the deal closes because lucasfilm does a fair amount of business globally, particularly in consumer products. we did say the deal would be slightly dilutive in its first two years, 2013 and 2014. we expect it will be accretive in 2015. >> i guess george lucas is the second large individual
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shareholder now of disney. is he going to have a role at the company, bob? what kind of role will george lucas have? >> no, george, thankfully, is going to be a consultant to us on lucasfilm-related business, particularly on the creation of the next "star wars" films. i've always had a good relationship with george and have welcomed his input. he's been a great partner of our in all of our attractions that have been "star wars" based. i look forward to continuing to interact with george, but he will be a consultant to us. >> looking more near-term, i know disney doesn't give formal guidance, but what should investors expect to see in your next two quarters? >> well, we don't -- we're not going to break it out quarter by quarter. what we're looking at for fiscal '13 is a strong year for our businesses. there are a couple of specifics regarding the first quarter that we're going to talk about on our call. overall, we feel good about the year ahead. not just in terms of our ability to deliver good results on the
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bottom line, but about all of the different developments we've been working on that are more long-term focused in terms of investment. >> you have such unique insight to consumer spending with the theme parks. what trends are you seeing now in terms of bookings? how healthy are american consumers and consumers abroad? >> our trends right now are fairly positive. again, we'll get specific in just a few minutes on our call, but what we see is -- i'll call it cautiously optimistic, both on the advertising front and on the travel and tourism front. interestingly enough, because i know there's been a lot of concern about europe, our bookings at disney land paris are quite solid. that could be a result of a 20th anniversary celebration there that's really working. but i'd say as we look at our theme park sector, in part because of some of the investments we've made as well. notably california adventure here at disney land in california. we feel good about what we're seeing. there's demand for that product. it's showing up in our pricing
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and showing up in our advanced bookings. >> how are the advanced bookings looking for the holiday season? >> advanced bookings for the holiday season are looking good. there's a quirk in the calendar. christmas falls on a tuesday. so some of our peak season will also fall into our next quarter because of how the quarter breaks. our bookings for the christmas period overall, which include some spillover into the next quarter, we feel very good about. that's certainly true in california. it's true in florida. it's true in paris. >> bob, the last time we talked, you seemed passionate about the need to fix our debt as a country. i wonder what your take is on president obama winning re-election. does that change anything for the company, for the industry? in terms of this fiscal cliff, everybody is expecting taxes to go higher. we're not sure how high on dividends and capital gains. will that dictate your behavior
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in terms of disney's payout, your dividend? >> well, first of all, i think i was most passionate when we last talked about the change in the corporate tax rate where we are the highest in the world right now. i don't think that makes this country competitive. i think it's a real impediment to true growth. so i'm very passionate about addressing that, not only reducing the rate, but in order to do so, i think certain loopholes have to get closed as well in order to make this country far more competitive. i think that's very important. i've seen some very compelling statistics about what a 10% drop in the corporate tax rate would do in terms of job creation. i hope that the new government, so to speak, or those that are now representing us in congress and the senate and of course at the white house, are very mindful of that. i sense there's growing interest in that subject. as it relates to the deficit, the fiscal cliff, look, i'm going to express optimism and hope. there was a lot of commitment expressed by both parties and by
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both presidential candidates about bipartisanship, reaching across the aisle, reducing the rhetoric and the rankor and stopping the gridlock and addressing what i think is a huge issue. i hope that what we see now that the election is behind us and what we've heard since the election occurred is that there really is going to be an attempt at getting something done. i also am hopeful that america in general is going to hold our elected officials' feet to the fire on that one. i don't think this country can tolerate another, sort of driving close to the precipice dynamic. my exhortation to our government is don't even get close to the fiscal cliff. deal with it immediately. deal with it productively. don't threaten the country and our economy. don't limit or decrease, you
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know, how people's opinion of the united states globally. get this done. if we don't, we're doing ourselves a world of damage, not only in terms of our reputation, but it will be impossible to fix the economy, create jobs, and get things going again. this is not something that can be played with and not something that can fall prey to the typical political rhetoric we've been seeing in washington for a long time. >> it's important you mention corporate tax rates and the competitive situation because we are talking about, what, the second highest corporate tax rate when you look at other global economies. in terms of your own allocation of capital, does it make more sense to do more buybacks as opposed to dividends, given where we are right now in this discussion? >> well, we've been blending our return of value, our capital to shareholders with long-term investment, both through acquisition and organic growth, dividends, although our yield is relatively low, and of course stock buybacks.
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i think you'll probably see with disney relative status quo in terms of approach on this. we'll continue to buy back our shares, not just the shares that we'll issue for the purchase of lucasfilm but continue to buy them back and reduce our share base. we won't make an announcement about the dividend until the end of the year. we increased it nicely last year. we're certainly mindful of issues regarding taxes, but i'm not sure that it's necessarily going to change our approach on that. and the lucas ak wcquisition wa big acquisition for us, one we're excited about. i don't think you'll see anything close to that in size any time soon. we are continuing to invest long term in our businesses, particularly parks and resorts. again, i think you'll see an approach going forward that doesn't change all that much even though there's likely to be a change in the tax structure. >> terrific. julia, over to you. thank you so much, bob. >> a question about advertising and economic uncertainty.
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how are you seeing all of this economic uncertainty affect your advertise advertisers? i know you don't break out advertising specifically in your report, but what can you tell us about what you're seeing now and moving forward? >> i think it's safe to assume that advertising was probably slowed a bit as the election neared. i think there's a distraction of let's see what's going to happen. it's obviously a little too soon to tell what's going to happen now that the election is behind us. generally speaking, the advertising is not bad. a little tougher on the local size. again, they lose a lot of revenue from political spending. on the national level, both on the cable front and the network front, i think it's a decent marketplace. one sector that's extremely strong is technology, which includes telcos and varying forms of consumer electronics where everyone seems to be competing with everyone else. smart phones, tablets, pcs, laptops and desk tops. you name it.
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that's been a very, very strong marketplace. i think we'll see improvement from automotives too. we're hopeful retail strengthens closer to christmas. >> that's a good note to leave it we'll see what happens with that ad market. bob iger, thanks so much for joining us today. mar maria, back over to you. chblg . >> >> thank you, julia. thank you, bob. can our leaders reach a deal to keep from going off the fiscal cliff? >> we're willing to accept new revenue under the right conditions. >> we'll discuss rising above politics to avert fiscal disaster with two economists. stay with us on that. and then later, white collar criminal mark drier orchestrated a fraud netting over three quarters of a billion dollars. wait until you hear what he's uncovered. back in a moment.
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welcome back. will washington get its act together and work together to fix the fiscal cliff? we have a former economic advisor to president's reagan and bush. jared bernstein is former economic advisor to vice
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president joe good to see you both. thank you so much for joining us. diana s delaying everything really the best option here? i don't think that's what voters want. what do you think? >> well, i think it is. i think the majority of voters don't want taxes to increase. that's why john boehner has such a large majority of republicans in the house of representatives almost probably more americans voted for republican members of the house of representatives than for president obama. he does not have a mandate to raise taxes. >> jared? >> if we postpone it -- go ahead, jared. >> no, please. go ahead. >> if we postpone the tax hikes and the spending cuts for a year, it'll give congress a chance to do some fundamental tax reform that will not hurt the economy, that will bring in more revenues that will make everything more efficient. >> jared, what do you think? does going over the cliff make everyone work harder to get a deal done?
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>> i think it probably would, but it isn't by any stretch of the imagination an optimal way to go. we should obviously try to solve this before going over. i will say i have a different view, of course, with the election outcomes, including some of the polling results than dia diana. i think a majority of folks in the exit polls said they were perfectly comfortable with the expiration of the upper income bush tax cuts. those are the ones that affect the top 2% of households. it's important to remember that congress agrees on the other 98%. look, i've heard diana's points. they are points that were certainly made before tuesday. but something happened on tuesday. i don't think we can move forward with the assumption that somehow we're right back in the exact same status quo vis-a-vis these negotiations. i think the president can legitimately argue that he comes out of this election with a lot
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of support for the expiration of the high-income tax cuts. >> well, fewer people voted for him than did in 2008. many more people voted for republican members of congress who campaign on a platform of not raising any taxes. that's the point. >> no, i think it's a fair point. i've also found it interesting to hear john boehner and others talk about new revenues, increased r ed revenues. of course, they're talking about broadening the tax base, closing loopholes, closing tax expenditures. i think the president is absolute lie right to start where he ended with his campaign about the expiration of the high-end tax cuts. i would like diana and others who believe that to start specifying which loopholes they want to close. >> it's also important to look at the corporate sector. our corporate tax rate is 35%. the tax on worldwide income. the president and the republicans both say the corporate tax rate should be
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lowered. that can bring in a vast amount of revenue and business from elsewhere around the globe. >> it sounds like there's a big opportunity here to lower corporate taxes while broadening the base by taking out those loopholes. >> which ones? >> i don't know which ones. that's what i'm waiting to hear. >> exactly. >> i guess carried interest goes away, right? >> that's $15 billion over ten years. >> so we're looking at lowering the corporate tax rate and making it territorial. in other words, just on united states' income. there will be income flowing back and we can have a 5% repatriation tax. >> i don't think that's going to happen. that's one i know president obama has talked about. tim geithner has been adamantly opposed to that. you think that's going to happen, jared? >> first of all, the president has a plan to go down to 28%. it does not include territorial. i don't think we're going to go
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there. nor is anyone interested in repatriation. i would like diana to actually specify -- this is not a got ya. we can talk about this broadening the base. i would like her to specify loopholes that she would like to see closed. >> are you talking about individual or corporate? >> yeah, on the individual side. >> on the individual side i would suggest that people have a certain amount of deductions they can take and they can choose how to do it. so say we say it's $25,000 or $70,000 or $30,000. they can choose do they want to put home mortgage in there, do they want to put charitable dedd deductions in there. then we limit it that way instead of saying we're going to get rid of the charitable contributions. >> i think that's a good idea. >> so we agree on something, jared. >> not only do we agree on it, but the president has had that in his budget since i was there back in 2009. it's a 28% cap on deductions for households 250 and above. it raises $.5 trillion over ten
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years. >> i guess -- real quick, guys. >> mitt romney also mentioned that kind of idea when he was on the campaign trail. >> real quick, how long will this take, do you think? you've both, you know, watched these guys operate in the past with congress. leadership in the white house. how long do you think it is going to take for us to get some clarity on this? >> right, well, doing fundamental tax reform takes a while. when bush came into office in 2001, it took until may. that was actually pretty short. we are definitely not going to get it done by december 31st. what's important is to extend the current system for either six months or a year. a year makes more sense because it's hard to change the tax rates in the middle of a year. that gives congress the time to develop something better. but with cbo saying that if we go off the fiscal cliff gdp growth is going to go down i did half a percent and we're going to go up to 9% unemployment, i don't think anyone wants that to happen. >> quickly, i think we'll know by the ends of december whether
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we're going to go over the cliff or not. >> wow. end of december. i hope. it expires december 31st. >> we don't want to be in that position. >> aisi'm afraid to say we willd up over the cliff. >> then we go into recession? >> no, that's what i was about to say. the scenario diana is describing says you go over the cliff and stay over the cliff. i don't want to go over at all. if we do and we can quickly reverse it, i don't believe that will be recessionary. >> we'll leave it there, guys. look, this conversation is not going away any time soon. thank you, jared. thank you, diana. let's get to bertha coombs with a market flash update. >> kayak shares have reopened for trading. the very recently listed ipo. they went public just last july 20th. a company agreeing to be bought out by priceline for $1.8 billion. that amounts to $40 a share. shares opened just above that.
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interesting, they were also reporting their earnings this afternoon. they don't have a conference call, but one of the reasons priceline may like them, they are growing very quickly when it comes to mobile. they process 56 million queries on mobile. that's up 87% from a year ago. the revenues they got from mobile grew 63% from a year ago. >> all right, bertha. thank you so much. marc dreier may not be the household name that bernie madoff was, but maybe it should be. >> i had over $100 million in the bank. could have stayed in dubai. i was a little distracted by that while i was having meetings all day with prospective clients knowing that i was likely to be arrested when i returned to new york. >> i'll talk with the documentary filmmaker on the other side of this break who also happens to be a former dreier employee. then, three of wall street's top market pros will tell you what could move your money tomorrow. stick around. customer erin swenson bought from us online today.
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welcome back. he may not have gotten all the headlines that bernie madoff did, but attorney marc dreier ran one of the biggest investment frauds in history. in tonight's documentary "unraveled," he talks about how he spent the cash was just as calculating as how he stole it. >> it wasn't so much that i stole money to buy things. it was more that i bought things
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so i could steal money. i needed to create the impression that i was very successful financially to allow me to present myself as the kind of person that people feel comfortable investing with. ♪ certainly i used some of the money that i stole to buy extravagant things. >> "unraveled" premiers tonight at 9:00 p.m. eastern. i want to bring in one of the people behind this film who worked for marc dreier and lost his job as a result of dreier's crimes. also joining us in the conversation is senior correspondent scott cohn, who has worked on this as well. mark simon with us, is director
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of "unraveled." thanks for being here. >> thanks for having me on. >> scott, you've done such great work in this space. mark, what motivated you to do this? >> ironically, i am an entertainment attorney who happened to have made two documentaries before this film. so when this calamity happened and i was sitting there, it seemed only natural that i would use it as an opportunity hopefully to tell a cautionary tale to educate the public. >> scott, you've covered dreier for a long time. what was most compelling about the film? >> i've covered a lot of white-collar crime. it is so compelling. it gets you inside the head of a white-collar criminal, what drives him. he seems to be, and i guess, marc, you know this because you spent so much time with him. he seems so driven by ego. it's denial to some degree. wants to be repenitent, but he's not. it's just this fascinating character study, i suppose, for
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90 minutes. it really kept me glued. >> tell us about it. >> what makes this film so unique that i hear over and over and is really what we were after is so often these white-collar criminals, whether it's bernie madoff or the multitude of other individuals, you see them on the cover of the headlines. you see them do perp walks. then you don't hear from them. in this case, you're with this individual for 60 days under house arrest while he rationalizes and tries to come to grips with this crime. he took in $750 million and virtually did this all by himself. >> how did he do it? >> it was an old-fashioned crime, really, in this day of technology. what he did was he went out to hedge funds, mostly hedge funds, some individuals, and said that one of his clients -- sheldon solo, the well-known real estate mogul, needed money for short-term loans for building overseas. it was totally fictitious. he took in the money and used it
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for his own purposes. solo knew nothing about this. >> do you see commonalities between a crook like dreier versus other crooks you've covered? what's the motivation? what do you take away? >> i've met a lot of these other criminals, spent time with them, not like this, but the commonality is the ego. it's not so much the things, these extravagances. it's the fight. it's sort of elevating themselves. they're just always, again, in denial until the end. >> he used to say to you, marc -- pardon me. he used to say, you'll never be me, simon, you'll never be me. >> when i would show up at his yacht or house in the hamptons for functions, you know, you're familiar as a lawyer what other lawyers make. he lived such a grandiose lifestyle it didn't make sense. i would say, marc, i'm working hard, i'm working really hard. how do i do this? he said, simon, you'll never be me, you'll never be me. >> unbelievable.
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this is such a terrific film. congratulations to you. thanks very much for joining us. scott, marc, thank you. don't miss "unraveled" tonight. it premiers tonight on cnbc at 9:00 p.m. eastern. can stocks bust their two-day losing streak tomorrow? we'll check it out. we have a trio of stock pros shedding light on that and what will move your money tomorrow morning. stay with us. ♪ [ female announcer ] today is not just about who lives in the white house, it's about who lives in the yellow house, the brick, the green, and the apartment house, too. today we not only honor the oval office, but we honor the cubicle, the open-air office and the home office as well. ♪ today is not just about who rides in air force one, it's about who rides in the 4 door sedan, the 2 door hatchback
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and the v8 muscle car. ♪ because today it's about all of us. and no matter who you are, or where you live, you're the commander-in-chief of your own life. and that's something that will never change. ♪
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all right. the dow down about 450 points since yesterday. should investors expect more losses ahead or do we see a bounce-back tomorrow? our next guests are here to tell you what will move your money tomorrow morning. paul christopher from wells fargo advisers and samuel coffin from morey harris. peter, 30 seconds on the clock. what do you want to look at? >> tomorrow morning at 9:55 we get consumer sentiment data.
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the number indicates we may be looking at a positive christmas selling season. could be better for the consumer. we are watching the advanced decline line flatten out in october. last two days kicked it over the ij. could be selling through to the end of the year. >> we'll watch that. paul, you have 30 seconds on the clock. what are you looking at? >> two things. if we get good economic data tomorrow that could be the thing to turn the markets higher. if we don't then look for more negative news from europe or possibly negative signs from washington. political bluster. any of those things could turn the market back lower. >> last but not least, sam, 30 seconds on the clock. what do you want to look at tomorrow? >> with growth and labor market data looking better the consumer confidence measures improved in early november for the university of michigan consumer sentiment index we think it rises a point to 83.5, the best level since before the
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recession. also tomorrow news on fiscal cliff negotiations could help or hurt both markets tomorrow and confidence later in the year. >> all right. we'll watch that. period of time, you saw the jpmorgan news today that the fed ok'd the buyback. was it big news to you? how important? >> definitely important. there's been concern about what's been going on with the banks, especially the way they sold off yesterday. this maybe will help put confidence back in the names that the capital is flowing and the concern isn't that heavy on terms of maintaining the reserves now. >> anybody look for a rebound from the 450-point sell off in two days? >> if we get good data tomorrow we could see a rebound. >> thank you very much. great conversation. appreciate your time. we'll see you soon. next my thoughts on health care reform now that president obama will be in the white house for another four years. plus a lot more about today's
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sell off. stay with us. in america today we're running out of a vital resource we need to compete on the global stage. what we need are people prepared for the careers of our new economy. by 2025 we could have 20 million jobs without enough college graduates to fill them. that's why at devry university, we're teaming up with companies like cisco to help make sure everyone's ready with the know how we need for a new tomorrow. [ male announcer ] make sure america's ready. make sure you're ready.
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on the health care legislation that will stay otherwise known as obamacare. we have been discussing tax reform and worries over the fiscal cliff. the truth is obamacare has the potential to be a much bigger expense and problem for business. since the legislation passed the estimates on savings have only gone down and the cost of the law has only gone up. with 18 months before the provisions go into effect and less time before companies must design new plans and offer them to employees they have to now treat the law as business reality. in january 2014 employers will have to either pony up a plan that meets that requirements of obamacare or opt out and pay the penalty which will cost them in dollars and employee morale. in large corporations there's probably not much to be done. most offer benefits through the existing health plans. others have waivers like
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mcdonald's. they have been pushing more costs to their employees and cajoling high risk ones into wellness programs, large companies have been, to keep the costs down. one wonders how many may find it cheaper to punt, pay the penalty and push workers to a government plan. is it smaller businesses that carry the burden of the expense? companies are assessing how many of their employees may be covered. then there is the rule that a company with 50 or more workers should provide health care. their business may decide not to expand, not create jobs. how many giant corporation which is created thousands of jobs would have been stopped by this law? as we focus on the big issue of the fiscal cliff don't think businesses are thinking of what cuts they will have to make due to the health care law. we'll be watching. that will do it for us tonight.